Hyperliquid [HYPE] spiked briefly from $78 to $97 on October 29, after Intercontinental Exchange (ICE) announced it would partner with Hyperliquid in introducing a regulated perpetual futures market in the US.
While the processing of this deal has stayed unclear, HYPE has cooled off from the news-driven pump. But major transaction activities are still ongoing. Some institutions are planning to sell while others are buying.
Paradigm unstakes HYPE as revenue counters the selling pressure
For instance, Paradigm unstaked 2.55 million HYPE tokens valued at $224 million from Hypercore across 15 wallets over the past two days. This amount is equivalent to 17.85% of their staked position, which is at 14.26 million HYPE, worth $1.26 billion.
However, the unstaking from Hypercore does not guarantee automatic selling. But it does matter where the 2.55 million tokens go. If they remain in the wallet, immediate impact is limited, but if moved to exchanges, it could hint at selling.
On the other hand, the chain’s strategic buybacks could mitigate this potential selling pressure.
First, Hyperliquid is expected to receive more than $15 million in November from Circle’s AQAv2 reserve yield framework. In October, almost a similar amount was deposited in USDC and used for buybacks.
Already, the test transfer of 2.52 USDC has reached the Hyperliquid Assistance Fund. Moreover, the protocol collected over $87 million in the month of October, which could add to the buyback program.
However, the revenue and USDC yield account for about half of Paradigm’s unstaked position, though it has not been sold.
Still, it is worth noting that the Bridge Volume has been declining in 2026 compared to the start of Q4 in 2025. Which will carry the day: selling pressure or buying pressure?
Is HYPE’s market structure still bullish?
On the charts, HYPE is retracing after the news-driven pump. But looking at the market structure on the 4-hour chart, HYPE is bullish as it broke and stayed above $80.
The altcoin remains fairly above this level, but the price could snap back. The CVD shows mild selling with over 450K HYPE tokens sold on Binance’s perpetual futures market.
Similarly, the Open Interest (OI) was declining as the price fell, indicating bears were not aggressively adding positions but were avoiding trading the market.
Therefore, HYPE could revisit $80, which is the last lower high (LH), and coincides with the 0.786 Fibonacci Retracement level. But if the support at $75 holds, the ultimate target for bulls would be $98.
Final Summary
- Paradigm unstakes 17.85% of its staked HYPE position, eliciting potential selling, but USDC yield and revenue could mitigate the risk through buybacks.
- HYPE was retracing after its sudden uptick to $97, but the market structure remains bullish unless the $75 support is lost.
